Sportsbook Bonus Reviews, Poker Rakeback and Bonus Chasing - get the facts!

I started my gambling/gaming life as an online poker player. Eventually I became curious about online casinos (and their bonuses) and started to play a few. I thought I would write this article to address some of the differences between online poker and online casinos - especially as it pertains to bonus chasing.

First, it's important to understand that, unlike poker where your skill gives you an advantage, in all casino games you are playing against the house - and the house ALWAYS has an advantage in the games they offer. It is important to understand that house advantage (HA) and, if your goal is to show a profit (some people just enjoy the games), learn how to select games that keep the HA to a minimum. For lots of information on casino games and their respective HA, I encourage you to visit The Wizard of Odds website. Without elaborating on specific blackjack rule sets (which vary the HA), I will use blackjack with a generic HA of 0.5% as the game of choice for the remainder of this discussion. It keeps the math simple.

So, in our example, if a player engages the house for 1,000 X $1 bets at our blackjack game where the HA is 0.5%, what is the expected value (EV) for the house? It is simply the wagered amount multiplied by the house advantage:

EV(house) = amount wagered X HA
EV(house) = $1,000 X .005
EV(house) = $5

The house can expect to earn $5 from a player in this game making $1,000 in wagers. Conversely, the player can expect to lose $5. If a bonus was being cleared during this time, however, the bottom line can still be beneficial to the player. And there's always the possibility for positive variance (a.k.a."good luck").

When evaluating a casino bonus one must know how much needs to be wagered, the HA, and the amount that can be cashed out when all is said and done. Consider the following offer: 100% deposit bonus to $200 max. The bonus can be cashed out after the player completes a wagering requirement (WR) of 10 X (deposit + bonus).

WR=10X(D+B)
WR= 10 X ($200 + $200) = $4,000

After the WR is met, the player can cash out whatever is left the deposit and the bonus. Thus, if the HA is our generic 0.5%, then the house can expect to make
EV(house) = $4,000 X .005
EV(house) = $20

The player should expect to cashout $400 - $20 = $380. Not bad for a $200 deposit.

SOME OTHER GOOD THINGS TO KNOW ABOUT ONLINE CASINOS:

The cashouts are generally slower than poker rooms
The customer service is usually better than poker rooms
Not all bonuses can be cashed out. Some are only wagering credits. Visit The Bankroll Builder for more information on these "Sticky" bonuses.
While larger bet sizes meets the WR more quickly, they also lead to larger fluctuations
in results.
HA values for games are dependent on optimal play by the player. Varying from perfect strategy will increase the house advantage.